2013 Overview of the European Biostimulants Market (Part 3)

By CnAgri Print The biostimulants sector is investing significantly in research to meet the needs of this rapidly expanding market

According to 2013 responses, most of the respondents to EBIC’s questionnaires invest between 3% and 10% of their annual turnover in research and development, but some re-invest an even higher share in innovation. Many companies have between 10% and 33% of their staff involved in R&D activities with a few companies slightly below that range. In addition, respondents of the 2011 survey reported almost 150 R&D partnerships with universities and other public research institutes. While most of these are in Europe, they also include partners in Australia, Brazil, Canada, Chile, Ghana, Mexico, New Zealand, Turkey and the United States.

It generally takes 2-5 years to bring new products to market, a significant investment considering how little protection there is to prevent copies/reverse engineering of biostimulant products. Several companies reported in 2011 that less than 10% of their products are patentable (and some even said none can be patented). A handful of others report that 60% or more of their products contain some patented element, although this does not mean the product as a whole is protected by patent. In many cases, it is a specific aspect of the production process that is patented. Furthermore, the disclosure requirements of patents can actually make it easier for unscrupulous actors to copy product formulations and processes.

The report for the global market size of the biostimulants is available.

Note:

1. Compound growth rates on the basis of sales and hectares treated. Most growth rates ranged between 10% and 31% for companies that have been in the biostimulants business for at least the past decade. To avoid distorting our analysis, they excluded growth rates of very young companies, which show an abnormally high rate due in part to the low base at start-up as well as two companies that a had a significantly lower annual growth rate over the past decade due to a very strong starting position in 2000. 

2. Respondents reported only 20-30 large (>250 employees) companies, with the rest of the sector beings SMEs. Some 200 companies have been reported in Europe thus far.

3. Many have additional employees working on other value chains.

4. FTE = full-time equivalent

5. According to current information: about 75% of the sector. 

6. Accessed online on 17 November 2011 at http://www.keepeek.com/Digital-Asset-Management/oecd/agriculture-and-food/oecd-fao-agricultural-outlook-2011_agr_outlook-2011-en.

7. Calculated using Ifadata statistics from the International Fertilizer Industry Association.